Organizing Your Finances

If you’re looking for debt settlement, one great place to start is with your own finances. Getting your finances organized is a key step in getting yourself on the road to financial freedom. If you’ve never done something like this before, it will take some time to set up your system, but once you’ve got yourself organized, keeping track of your money will be much easier.

First, decide whether you want to track your finances electronically or on paper. There are advantages to each method, but in the long run, an electronic record of your transactions will probably be more versatile. Also, if you’re married or otherwise in a relationship with another person, and you share finances, your system will have to work for two people.

If you decided to go the electronic route, there are several free programs you can use to help you keep track of your expenditures and your budget. Though the two are related, they’re not the same. Your expenditures are your actual purchases and payments. Your budget is the plan you’ll use to make spending decisions.

The free programs run the gamut from very basic checkbook registers, to complicated budget planning and expense tracking programs. You may also be able to import statement data from your bank, and export data from your finance program to other software tools. These tools do take longer to set up, so don’t lose heart if this takes longer than you think it should. You can find a wide selection of these programs at Web sites like Tucows.

Make a list of your established electronic payments and the date(s) on which these payments are withdrawn from your bank account. Don’t forget to include any periodic payments that may happen only once or twice each year.

Collect your bank statements from the last 6-12 months. You may want to enter some starting data to get your finance program rolling. If not, your statements are still good to have on hand, because they’ll help you when you start planning your budget.

Have a calendar handy. You’ll need to mark specific dates that bills and special payments are due, and you’ll also need to mark paydays. This will help you keep track of your cash flow from paycheck to paycheck.

When you’re ready to start, you’ll need to track all of your expenses, the date they occur and what effect they have on your bank account. It may take a month or two to get into the habit of maintaining your own financial records. If you get into the habit of doing this regularly, you’ll find that balancing your checkbook each month will be easier and you’ll have better control of your finances.

How Can Personal Finance Software Help Me?

In the good old days, personal finance for most people meant simply balancing their checkbook once a week and making sure they had enough money in the bank to cover the monthly bills. Of course that was long before the days of multiple credit cards, electronic fund transfers, PayPal, and the dozens of other complicated financial transactions made by even the average person on a daily basis. These days, keeping track of person finances can be quite a chore and can often overwhelm you, leading to a less than perfect financial situation.

Modern life has created additional headaches in our daily lives, but fortunately it has also provided new tools to use to control them. Personal finance software is the best option for keeping one’s personal finances organized and up to date.

Personal finance software comes in many varieties, each offering a specific set of financial tools. The simplest forms simply keep track of multiple bank accounts, including credit card accounts. The most complete versions offer tax tracking, investment tracking, budget analysis, electronic banking and a long list of other features. How much you need depends on your situation and how closely you want to track your finances.

Most banks now offer free electronic banking to their customers. Make sure that whichever program you choose, it is capable of taking advantage of electronic banking. The vast majority of programs offer this feature as standard so you shouldn’t have to look hard. With electronic banking, you can easily check your balance, automatically download statements, transfer funds among accounts and have all your information seamlessly transferred into your electronic account register.

The two powerhouses of financial software are Quicken from Intuit Corporation and Microsoft Money. Both companies offer several versions of the program and generally offer the same features. The interfaces are slightly different and one’s preference will likely come down to which one appeals to you most. New editions are released each year to account for changes in banking and tax law and owners of the previous year’s edition will receive discounts to upgrade.

Another option that is growing in popularity is software that is kept entirely online. You never actually download a program to your computer and can access your information from any computer connected to the Internet, including SmartPhones. This is referred to as “cloud computing.” Some websites offer a low monthly fee to use the software and other sites are free and entirely advertising supported. Some people prefer this method for its convenience and other people stay away from these programs due to security fears.

Once you begin to use personal finance software you’ll wonder how you ever managed your finances without it. People become addicted to seeing the computer generated reports of exactly where their money goes each month. They often find this makes it easier to create a budget and stick to it. Even if you simply want to keep your basic checking account up to date, personal finance software is worth the small price

Five Reasons To Keep Your Finances Electronically

Parallels Between Physics and Finance

It would be interesting to compare two sciences of physics and finance. While one deals with the money the other deals with the physical universe. Both are important branches of studies so drawing a parallel between them will be interesting to many lovers of sciences.

Most of the theories in physics have models explaining a certain phenomenon. Whether it is electricity, magnetism, thermodynamics, gravitation each field has a subsets of models to explain various observations. For e.g. the Doppler Effect model in waves theory explains the plain variation of sound frequencies by a single set of equations. The Kirchhoff’s law explains the law of flow of electric current in a closed circuit of electricity is a model based on some set of equations. The financial theory in recent times has become model based where the price of options comes from Black S Merton models. There are a set of inputs required in the model to describe and price the option. Similar to the physics models where one need to put in several parameters values to find an ideal solution.

Uncertainty is common to both finance and quantum physics. Quantum physics has a ground in uncertainty and that everything we see is in a random state of motion. Everything is arbitrary and does not has well-defined laws that can predict the outcome. Heisenberg’s uncertainty principle states that the place and momentum of the electron cannot be determined simultaneously with exact precisions so where will be the electron located after sometime in the future cannot be determined exactly. Similar case happens in stock markets where an investor cannot be certain as where would be the index after sometime with exactness. There is always a degree of uncertainty associated with the market movements and thus closely resembles the Heisenberg’s principle. Interest rates are the most dynamic measure of all that keeps on changing with the time and shows volatility so predicting where it will go the next moment requires a rocket scientist who can by all his knowledge can come out with a shrewd model that can predict the interest rates sometimes if not all the times. This uncertainty is a very important concept that happens everyday in the financial world. The speculators, hedging traders and the arbitrage traders all face this uncertainty and the risk of the market movement that could loss or gain them financially.

The geometric Brownian motion describes the path of the particle suspended in a liquid. A physician first observed this random motion of a pollen grain suspended in a liquid to follow a random path termed as the Brownian motion. Einstein described these Brownian motion mathematically in his paper, giving a set of equations that could describe the path followed by the suspended particle. His equation explains that the path of the particle is jointly described by a constant displacement term and a volatility term. It is the set of these equations that explains today the path of interest rates, the path of stock market index or the volatility path.

In their famous paper Black S and Merton describes the path followed by the stock prices follows Brownian motion equations which laid the foundation for the famous Black S Merton model that is widely used today by traders all over the world to values options. Black did use the law of equilibrium of physics to lay the basic idea behind the Black S equation. The joint portfolio of a long stock and a short call option would yield the same constant risk free rate over a short period. So the joint position would always be restored to the same risk free return. Various interest rate models like the lee model, Ross model or the White Hull models are mathematically given by the same set of Brownian motion equation difference is only that they are different in their displacement terms and volatility terms to describe the interest rates movements. The displacement coefficient can depend on time, a constant or a zero.The volatility coefficient is also sometimes depends on time or on the volatility itself. Thus when it comes to determining an uncertain quantity in the future there comes into play Brownian motion equations.

Uncertainty plays a big role in valuation models used today for valuing securities like equity and bonds. There are a thousand of different scenarios of future are possible when forecasting the interest rates, earnings or the discount factors in the valuation exercise. Similar observations happens when calculating the path taken by electron. An electron can take a very large number of paths when moving from one place to another. Richard Feynman gave an approximate number for the path that the electron can take through his sum over histories methods. Similarly the earnings of the company can follow several paths. Monte Carlo simulation can see different scenarios of path and a final value calculated by taking a mean of values calculated from values observed in several different paths. The forecasted values could be misleading and could be totally different, in a similar fashion the electron place could be misleading and incorrect. So if price of a security cannot be determined precisely and exactly, the present state of the electrons cannot be used to predict the future place by the quantum theory precisely.

If there is uncertainty then some models and theories do come close to predicting the next outcome. Take such as the theory of photoelectric effect which has a single equation given by Einstein. Theory is simple and elegant and beautifully explains the observed phenomenon with high degree of precision experimentally. The bond valuation includes discounting the future cash flows which are certain to occur and through proper discount rates one can come close to exact present value of the bond in the market. Sometimes theories do come close in explaining the real world. If a physicist wants to explain the falling of a ball under gravity he would use equations of motion to describe the path of the body. The frequency of light in a heat radiation is given by energy divided by the Planck’s constant. Similar scenarios happens when a credit analyst wants to find the credit spread of a bond he would simply multiply the loss given default for the bond and the Probability of default for the bond.

Phenomenon of heat equilibrium states that the heat flow between two surfaces takes place until the temperatures of both the surfaces attains the same temperature and is in thermal equilibrium. Once the thermal equilibrium or two surfaces have equal temperatures the flow of heat stops. Arbitrage is the trading of incorrectly priced securities in different markets so if security is over-priced in one market trader sells in that market and buys in the market where it is under-priced until the price levels are same in both the markets. So flow of security takes place from the market where it is under-priced to the market where it is over-priced. See how temperature and price are analogous in explaining the two different phenomena’s in same way. So money is flowing from one market to another market in the same way that the heat is flowing from one surface to another surface till the state of equilibrium of prices or temperatures reaches.

The quantitative theory of money states that measure of money in the economy determines inflation. So if money supply increases then there is inflation and if the money supply decreases then there is lower inflation. It could be compared with the heating of a body so that if the temperature of the body increases the heat radiates in large proportions to the fourth power of temperature and if it lowers then the heat radiated lowers proportionally. The inflation measures the amount of excess money in the economy in a similar way the temperature of the body measures the amount of excess heat in the body.

Thus overall the theories of finance and physics could be seen in a similar way except that they are taking place in two different worlds. Various theories have models that have a few set of parameters. There is uncertainty in some theories then there is some certainty in other theories in explaining the observed phenomenon. Laws of electricity, magnetism, gravitation and heat are applicable in finance also but not in same way as in physics. The same sets of explanations characterize what happens in both the worlds in the end they are different sciences. While physics deals with the study of nature and observed phenomenon then finance deals with the study of markets and its instruments.Nevertheless some parallels can still be drawn that should not sound meaningless.

2 Tips For Success With EMR Software Financing

In the times of paperless office all kinds of written records and paperwork are being replaced by computerized data stored in computers and hard disks. Technology is advancing fast and the medical industry is one of the primary industry’s to fall prey to the invasion of technology. However as everything goes online so does the cost of running and managing everything electronically. For this purpose there is the Electronic Medical Record (EMR) financing which can help you to avoid unnecessary expenditures and aid you in planning out your expenditures at every step.

Once you have found your financing solutions there are two things you need to heed to in order to make the best of opportunities.

1. Customized Financing Plan-Like most of the things in your hospital you might want your software financing plans to go smoothly and not exceed your budget. However, in that case you might have to opt for customized software which will be customized to serve your institution with regards to its needs and requisites but this will also be expensive than the standard softwares.Therefore, even when you are looking for a financing option that will be an excellent aid to incurring costs at your medical institution and also not be very expensive, you should keep in mind the other costs being spent on different quarters of the institution.

2. Gradual Transition-Many medical institutions do not go for Electronic Medical Record (EMR) financing because it is expensive and also time consuming. Especially, as a huge medical institution catering so many people, you cannot take your own time to implement this software and get your staff to be accommodated to the automation. However if you are worried about the money factor then you can always resort to leasing the software at a lower price to try it out before you actually purchase it. On leasing the Electronic Medical Record (EMR) financing software you can take your time to get used to the software and also not make you feel the burden of having bought it at a high price. This way you can gradually switch over to Electronic Medical Record (EMR) financing and get the biggest benefits out of this software.